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Paypoint plc (PAY)

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Thursday 14 August, 2008

Paypoint plc

Trading Statement

PayPoint plc
Interim Management Statement
14 August 2008

The board is pleased  to report on  events, transactions and  trading
since the last year end.

Over the  period,  key contracts  were  signed or  renewed  and  good
progress made on business initiatives to expand our product offering.
In  the  UK,  bill  and   general  payments  are  running  ahead   of
expectations. The impact of this is mitigated by lower mobile top-ups
as experienced in other retail networks and by the delay, in  Romania
of the introduction of the bill payment service, the launch of  which
we were pleased to announce this week.

Performance[1] for the period from 31  March 2008 to 27 July  2008[2]
and financial position[1] as at 27 July 2008

Terminal sites have increased by 1,351 since the year end from 23,895
(including 4,017 in Romania) to 25,246 (including 4,781 in  Romania).
Transactions processed  for  the  period were  163  million,  up  10%
compared to 148 million for the same period last year.  Revenues  for
the period were £71m, up 11%.

Earnings are in line with market expectations.

After the payment of the final dividend of £7 million, net cash at 27
July was £26 million (including  client cash of £8 million)  compared
to £28 million  (including client  cash of  £8 million)  at 30  March

[1] PayPoint's auditors have not been requested to review the
performance or financial position
[2] Comparative data is given for the similar 17 week period last
year (i.e. 2 April to 29 July 2007)

Finsbury  +44 207 251 3801
Rollo Head/Don Hunter

Notes to Editors
PayPoint is the leading cash and internet payments company in the  UK
also with operations in Ireland and  Romania. We handle in excess  of
£7 billion from over 500 million transactions annually for more  than
5,000 clients  and  merchants.  The  company  operates  with  several
payment networks:

  * The PayPoint branded retail network numbers over 20,000 terminal
    sites located in local shops (including Co-op, Spar, Costcutter,
    Sainsburys Local, One Stop, Londis and thousands of independents)
    in all parts of the UK and Ireland. Terminals handle gas and
    electricity meter prepayments, cash bill payments, mobile phone
    top-ups, transport tickets, London Congestion Charges, TV
    licences and a wide variety of other payment types for all of the
    leading utilities, telecommunications suppliers and many consumer
    service companies. This network is used by consumers, free of
    charge, over 8 million times a week. The network has 99%
    population cover on a 1 mile urban or 5 miles rural measure;

  * Multiple retailer connections into the electronic till systems in
    addition to the branded terminal outlets including BP, Somerfield
    and Superdrug for mobile top-ups and selected payments from the
    PayPoint range;

  * An ATM network which has 2130 'LINK' branded machines across the
    UK, also typically in convenience stores;

  *, an internet payment service provider, provides
    secure credit and debit card payments for over 5,000 web
    merchants linking into all the major UK acquiring banks; and

  * Pay Store, a Romanian mobile top-up operator with over 4,000
    outlets equipped with electronic terminals and 2,000 other retail
    outlets. A bill payment service has been added to increase the
    breadth of PayPoint's offering in Romania, in line with the UK
    branded retail network.

PayPoint floated on the London  Stock Exchange in September 2004  and
the company's  market  capitalisation  at 14  August  2008  was  £431



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